Strengthening of euro against the dollar overseas also supported the local currency, forex dealers said.
The rupee had gained 23 paise to end at nearly two-week high of 54.18 on Tuesday.
Meanwhile, the BSE benchmark Sensex fell by 112.82 points, or 0.58 per cent, to 19,452.10 in early trade today.
Rupee breaks 3-day winning run, down 13 paise
Re rises for 3rd day, up 28 paise vs USD
A day that ROCKED the Bombay Stock Exchange
Rupee up 16 paise at 1-week high of 54.56
5 TIPS to invest in the stock market